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Apple Explores Making iPhones in the US, Finds 'the Cost Will More Than Double': Nikkei (nikkei.com)
Apple is exploring the idea of making iPhones in the United States. But the company has realized that it will cost more than double to make the shiny new gadgets at home, according to a report on Japan-based outlet Nikkei. From the report:Key Apple assembler Hon Hai Precision Industry, also known as Foxconn Technology Group, has been studying the possibility of moving iPhone production to the U.S., sources told the Nikkei Asian Review. "Apple asked both Foxconn and Pegatron, the two iPhone assemblers, in June to look into making iPhones in the U.S.," a source said. "Foxconn complied, while Pegatron declined to formulate such a plan due to cost concerns." Foxconn, based in the gritty, industrial Tucheng district in suburban Taipei, and its smaller Taiwanese rival churn out more than 200 million iPhones annually from their massive Chinese campuses. Another source said that while Foxconn had been working on the request from Apple Inc., its biggest customer that accounts for more than 50% of its sales, Chairman Terry Gou had been less enthusiastic due to an inevitable rise in production costs. "Making iPhones in the U.S. means the cost will more than double," the source said.
This is just starting some per-emptive whining because Trump has mentioned that he's going to make Apple manufacture in the USA.
I'm not sure how he thinks he can legally do that. A better solution would to to make Apple pay its taxes.
No sig today...
Just FYI, Foxconn operates factories in something like 14 different countries. Doesn't seem that strange to ask them to mock up a plan to set up a factory in the US. After all they do have all the manufacturing expertise for those devices, what US company even makes anything related to that sort of device to ask?
>The component cost for an iPhone 7 is estimated to be about $250
NOWAI! Iphone 3 did cost around USD $30 in materials. Four, possibly around $45 for materials + fabrication costs due to more custom parts/manufacturing processes and genuinely better component selection. FYI, Samsung posted material + fabrication cost of 76k KRW for Galaxy S7 in their earning call.
IHS idiots calculate the BOM cost using retail component prices. Five years ago they were saying that the microscopic battery of the third iphone did cost 11 buck. Back then, I could've easily found better prices retail in Chinese malls, like for 70-90 cents.
I agree that moving production overseas has hurt many workers but what about the benefit all Americans have received in terms of lower product prices? How do we balance that?